Get Real PREX-1060A Exam Dumps [Mar-2025] Practice Tests
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NEW QUESTION # 42
Which of the following is NOT relevant information a salesperson must verify when representing a landlord who is planning to lease their industrial property?
- A. The salesperson must verify the zoning information for the industrial property.
- B. The salesperson must verify the previous tenant's lease rates and terms.
- C. The salesperson must verify the rates and terms of lease for the property.
- D. The salesperson must verify whether the tenant's intended use for the industrial property is permitted under the zoning bylaw.
Answer: B
NEW QUESTION # 43
Which of the following is most likely to be a factor in an appraisal for an industrial property?
- A. Amount of advertising and publicity
- B. Proximity to museums and historical sites
- C. Access to raw materials used in the region
- D. Price trend for detached homes in nearby neighborhoods
Answer: C
NEW QUESTION # 44
If a property in Ontario is assessed and valued as farmland by the Municipal Property Assessment Corporation (MPAC), the farmer could receive a 75% tax reduction for municipal taxes if certain conditions are met. Which of the following describes a condition that must be met?
- A. They carry on a farming business generating a net profit of $100,000.
- B. They submit the appropriate application semi-annually.
- C. They are Canadian citizens or permanent residents of Canada.
- D. They have a valid harmonized sales tax (HST) registration number under the Excise Tax Act.
Answer: D
NEW QUESTION # 45
A retail property buyer must consider the parking requirements associated with the site. All of the statements below are considerations for parking, EXCEPT:
- A. Parking may be impacted by zoning requirements.
- B. Parking may be impacted by the municipality's parking bylaw.
- C. Required parking for persons with disabilities is usually fixed as a ratio based on the number of disabled persons in the community.
- D. There may be minimum width and depth requirements for parking spaces.
Answer: C
NEW QUESTION # 46
Established under the Farming and Food Production Protection Act, the Normal Farm PracticesBoard is composed of members appointed by the Minister of Agriculture, Food and Rural Affairs. Which statement is NOT accurate with regard to the Normal Farm Practices Board?
- A. The Board can conduct hearings that are heard by a minimum of five board members.
- B. The Board can order farmers to cease practices that cause disturbances if they are not considered to be normal farm practices.
- C. The Board can dismiss complaints if the disturbances are the result of normal farm practices.
- D. The Board can order farmers to modify practices for consistency with normal farm practices.
Answer: A
NEW QUESTION # 47
All of the following aspects of a commercial property may affect its eligibility for Leadership in Energy and Environmental Design (LEED) certification, EXCEPT:
- A. Sustainability
- B. Innovative elements
- C. Vacancy rate
- D. Energy efficiency
Answer: C
NEW QUESTION # 48
A buyer client is interested in purchasing an industrial property for their manufacturing business. The buyer's salesperson informs them of the building criteria, along with the minimum requirements for clear height and clear span that would be suitable for the buyer's business. What should the salesperson explain to the buyer regarding clear span?
- A. The salesperson should explain that clear span refers to the unobstructed vertical distance from the floor to the bottom of the highest point of the ceiling or roof component.
- B. The salesperson should explain that clear span refers to the total amount of floor area in the space, including the space that is occupied between columns and walls.
- C. The salesperson should explain that clear span refers to the unobstructed vertical distance from the floor to the bottom of the lowest ceiling or roof component.
- D. The salesperson should explain that clear span refers to the amount of floor area that is clear of interference from columns and walls.
Answer: D
NEW QUESTION # 49
Which of the following is a risk associated with investing in commercial real estate?
- A. The insufficiency of cash flow during the holding period
- B. The fact that rent, leased space, and building size are fixed
- C. The relative lack of capital growth during the holdover period
- D. The relative lack of liquidity
Answer: D
NEW QUESTION # 50
A lender completes a financial statement analysis and calculation on various ratios that would indicate the financial performance of the commercial building. Which of the following is NOT correct?
- A. It does not matter; mortgaging does not affect cash flow and yields.
- B. The success of ventures often rests in the availability and suitability of financing.
- C. The investor is afforded the opportunity to enhance yield.
- D. Lenders will apply various financial ratios to get a solid understanding of the business's performance and the ability of the borrower to service debt.
Answer: A
NEW QUESTION # 51
Utility requirements are different for retail, office, and industrial properties, and a salesperson should understand the utility needs of each client. Which of the following items is NOT required bya typical occupant of a retail space?
- A. A high voltage and ampere supply
- B. Sufficient lighting
- C. A proper ventilation system
- D. A stable internet connection
Answer: A
NEW QUESTION # 52
A salesperson sells an office building using the Commercial Agreement of Purchase and Sale along with a schedule that lists all the fixtures, chattels, and rental items of the office building. After closing the real estate transaction, a dispute arises between the seller and the buyer about which chattels, fixtures, and rental items of the office building were to be included and which were to be excluded. Which of the following is NOT an accurate statement regarding the salesperson's actions related to negotiating chattels, fixtures, and rental items?
- A. The salesperson should clearly list all rental items and service contracts, as these will not be included in the purchase price of the real property being purchased.
- B. The salesperson should specifically exclude all fixtures that are not a part of the transaction since fixtures are considered a part of the property and are normally included in the purchase price.
- C. The salesperson should clearly describe and list the fixtures and chattels in the Agreement of Purchase and Sale and mark each item as an exclusion or inclusion.
- D. The salesperson should specifically exclude all chattels that are not a part of the transaction since chattels are considered a part of the property and are normally included in the purchase price.
Answer: D
NEW QUESTION # 53
A buyer client has hired a commercial appraiser to assess the market value of a fully tenanted commercial complex. The complex is mixed-use with retail on the main level and offices on the second and third levels. It is an older property with unique characteristics. Which of the following is NOT a correct statement regarding how the appraiser will determine the value of the property?
- A. The appraiser will assess how convenient it is to access the building and whether customers would be required to walk a significant distance within the mixed-use commercial complex to find a retailer.
- B. The appraiser will research similar buildings, as commercial properties are usually bought and sold on a dollar value per square foot.
- C. The appraiser will assess the layout of the complex, as it will directly establish the utility of the mixed- use building.
- D. The appraiser will research the layout of other types of commercial buildings to establish the utility of the mixed-use building.
Answer: D
NEW QUESTION # 54
A buyer is interested in constructing a retail building and wants to use the most efficient method to save time and money. Which statement is true with regard to tilt-up wall panels and pre-cast panels?
- A. Both tilt-up panels and pre-cast panels can lower construction costs.
- B. Pre-cast panels cost much more than tilt-up panels.
- C. Pre-cast panels are more durable than tilt-up panels.
- D. Both tilt-up panels and pre-cast panels are formed off-site.
Answer: A
NEW QUESTION # 55
Obtaining the size and boundaries of a commercial condominium unit is an important task for a salesperson.
Which of the following statements regarding this task is NOT correct?
- A. An Ontario Land Surveyor can be hired to measure the space.
- B. The original plans should be used to determine the size of a unit.
- C. Space should be measured in accordance with BOMA standards.
- D. An architect can be hired to measure the space.
Answer: B
NEW QUESTION # 56
A first-time investor is looking to purchase a commercial property and asks their salesperson about the gains they can hope to achieve from this type of asset. What should the salesperson explain to their client regarding the purchase of commercial properties as a source of capital growth?
- A. The salesperson should explain that a better return on investment will be achieved with rising interest rates.
- B. The salesperson should explain that to achieve capital growth, the client should be a long-term investor.
- C. The salesperson should explain that the client should always consider being a short-term investor.
- D. The salesperson should explain that making a commercial property investment is an easy and smooth process that provides good short-term gains.
Answer: B
NEW QUESTION # 57
The cost approach is one method of real estate evaluation that an appraiser may use to estimate the value of a commercial property. Which of the following is NOT an accurate statement regarding the cost approach?
- A. The cost approach is preferred for older construction properties, as calculating depreciation on them is fairly straightforward.
- B. The cost approach is useful for the appraisal of property types for which sales and income data are scarce, such as industrial and special-purpose properties.
- C. The cost approach is typically used to appraise income-generating properties.
- D. The cost approach is preferred for newer construction properties, as the appraiser would not need to make a subjective estimation of the accrued depreciation of the building.
Answer: A
NEW QUESTION # 58
A salesperson has a buyer client in the metal fabrication industry, which requires outdoor storage and involves substantial noise and smells. The salesperson sees a listing that says "24,000-square-foot light industrial property, multi-uses permitted." Is this a suitable property for their client? Why or why not?
- A. Yes, the property will be suitable if the client states they will change the zoning to allow their type and classification of business to operate at this location.
- B. Yes, the property is suitable since the client is already in the metal fabrication business, and does not need to get any permits from the municipality prior to moving in and using the property.
- C. No, the property is not suitable, as the client's business type and classification require heavy industrial zoning.
- D. Yes, the property is suitable, as the listing says the property is light industrial and multi-uses are permitted.
Answer: C
NEW QUESTION # 59
Which of the following statements regarding Building Owners and Managers Association (BOMA) standards is correct?
- A. The BOMA standards provide methods of measuring industrial buildings only.
- B. The BOMA standards provide procedures to measure rentable areas only.
- C. The BOMA standards provide methods of measuring office buildings only.
- D. The BOMA standards are complex.
Answer: C
NEW QUESTION # 60
A land developer is interested in purchasing a piece of vacant land. Which of the following statements about evaluating the highest and best use of the real property is correct?
- A. A designated appraiser will use all factual sales data to determine the value of the current highest and best use of the property.
- B. A property's highest and best use is the use that, at the time the building was built, was most likely to produce the greatest net return.
- C. The estimate of value is related to how a typical buyer, with a reasonable knowledge of the market and property, wants to use the property.
- D. The land developer can identify the use of the property that is anticipated to produce the highest overall return so the appraiser can complete the appraisal.
Answer: C
NEW QUESTION # 61
A buyer wants to purchase an industrial property for its international logistics and distribution center.
Currently, the building is used by a local courier company with small delivery trucks and vans. When drafting an offer to purchase this property, which of the following should be added regarding this change of use?
- A. A clause to obtain the necessary mortgage amount
- B. A clause to test the quality of the underground water source
- C. A clause to check the condition of the trucks and vans
- D. A clause to ensure the truck parking spaces and turning radius are sufficient
Answer: D
NEW QUESTION # 62
A buyer should consider the record of site condition (RSC) document when purchasing a commercial property. Which of the following statements regarding an RSC is correct?
- A. With other documents, it will inform the buyer of any legal issues attached to the title.
- B. Requesting an RSC is mandatory in all real estate transactions.
- C. It contains records pertaining to a property's financial condition.
- D. It is not a material fact; thus, it is a formality for the buyer to get it.
Answer: A
NEW QUESTION # 63
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